Flaherty alludes to more money for Canada Job Grant

Finance Minister Jim Flaherty says there will be additional money in the 2014 budget for “various issues” that could include the stalled Canada Job Grant.

Speaking to reporters following a meeting with private sector economists Monday, Flaherty said Ottawa’s stringent spending record could provide for extra money that had not been initially planned.

Asked whether Ottawa will be in a position to contribute additional money to the Canada Job Grant, Flaherty said: “There will be room for more money in the government of Canada in the next several years because we’ve been careful.”

“The deficit will be in a position to have room to move on various issues.”

Moments before, Flaherty said he didn’t want to comment on additional funding for the program, currently stalled because of opposition from provinces who object to the grant in its current form.

He said questions should be directed to Federal Employment Minister Jason Kenney, who is leading negotiations on the Canada Job Grant. “[I]’m not that close it to,” Flaherty said.

Questions about the funding model for the Canada Job Grant arose earlier this month when Kenney revealed he had told cash-strapped provinces they would not to pay into the $900-million program as an olive branch to speed negotiations.

It is unclear whether the concession would mean Ottawa would cover the provincial contribution — a move that would require more money — or if the grant cost would remain the same but fewer Canadians would be trained under the program.

Unveiled as the cornerstone of the 2013 budget, the job grant initially proposed to be funded equal parts by the federal government, employers and provinces. Ottawa estimated 130,000 Canadians could access skilled training under the $15,000 individual grant.

Provinces, however, argue the grant will redirect money away from provincial training programs used to help disabled people, aboriginals and youth find work. Ottawa’s $300-million contribution to the grant would come from a $500-million annual transfer to the provinces.

Kenney and the provinces have been negotiating a way forward on the grant since the summer, and have exchanged numerous proposals and counter-proposals. Kenney’s latest proposal, delivered to provinces December 24, held his biggest concession to date — scrapping the provincial contribution.

Provinces, however, have rejected the offer because it does not address their loss of $300 million in training for disadvantaged populations.

Provinces are currently crafting their latest counter proposal to Kenney’s offer and have yet to officially respond, a spokeswoman for Ontario skills minister Brad Duguid said Monday.

Flaherty told reporters he was “hopeful” Kenney and the provinces could work out a deal.

“Rome wasn’t built in a day,” he said. “It will take time. The concept is a good concept. We’ll just have to keep working on it. I know the minister responsible has been spending a lot of time on it with the provinces. I’m hopeful that it will work out.”

Kenney has repeatedly said he wants a deal with the provinces but that Ottawa will not hesitate to go at the program alone if necessary.